The research paper focuses on calculating the Altman’s Z score for bankruptcy prediction for the airline industry in India. The modified Z Score for non manufacturing companies is used for analysis. 6 listed companies namely Jagson Airlines, TAAL enterprises, Global Vectra Helicorp, Spice Jet, Jet Airways, IndiGo Airways and the government owned Air India is considered for analysis. The Z scores for three preceeding years is calculated and analysed. The research paper states that the overall aviation sector is in financial distress . Only IndiGo airways is in the safe zone with a Z score of more than 2.9. All other companies are in financial distress.
Keywords
Altman’s Z Score
Airline Industry
BSE
Bankruptcy Prediction.
How to Cite
Kulkarni, S. (2018). Analysis of Z Score for BSE Listed Airline Companies in India. PARIDNYA- The MIBM Research Journal, 6(1), 24–29. Retrieved from http://www.mibmparidnya.in/index.php/PARIDNYA/article/view/132055
Altman, E. (1968). Financial ratios, discriminant analysis and the prediction of corporate bankruptcy. The Journal of finance , 598-608.
Hsu, C. C. (2017). Applying Z-score Models in Aviation Finance Education: A Case Study of Some US Carriers. International Journal of Education and Social Science , 4 (3), 34.
Richard D. Gritta, B. A. (2008). An Update on Airline Financial Condition and Insolvency Prospects Using the Altman Z†Score Model. Journal of the Transportation Research Forum , 133-138.